Disclaimer: The purpose of this blog is not intended to induce or promote any insider trading or manipulation activity. This blog is created for the sole purpose of education, discussion and knowledge sharing. All charts and information can be obtained freely from the public internet. All analysis are based on my own personal view and years of experience. It should not be used as a decision to solicit buy/sell activity. Use all information at your own discretion and practice due diligence.

Monday, December 4, 2017

Yingli - Why Good News is Bad for Stock Price?

Yingli, a stock which released a piece of wonderful news on 28/11/17 where they sold ChongQing ICC Project for $672 million was supposed to be good for the company as they increase their net cash flow became quite detrimental for their stock price. Before this good news was released, the stock was halt 3 days at the bottom with a strong COB which the signal was quite clear for a long.

In my years of trading and investments, I can say that when there is a huge demand, it's usually quite bad for the stock price. Look at Razer and Yixin which was 500+ times oversubscribed, both stocks are now currently under water and suffered major selling which recorded many stale bulls up there where it's going to take a lot of time before recovery. I made some profits and losses there and that's where I picked up lessons and experienced. Rowsley was another one too back in July where you see 2 long green bar and till today, prices have not reached back the 0.15 level, not even mentioning the high of 0.198.

Yingli, after the trading halt was lifted, the stock price went up just a little bit and from there on, there wasn't much daylight with so much blocks of big selling and price suffered to a almost the buying price before the halt. Studying the minute chart revealed that there was a huge gap up and in the daily chart, it was pretty obvious that retailers were chasing. It's going to take some time before Yingli can climb back to 0.164 again. It's just like Midas when I posted on my blog that sellers were going to gain control BEFORE the actual sellers emerged.http://stockmarketmindgames.blogspot.sg/2017/11/midas-drifting-away-from-021.html

December 12th will be my last talk for the year and hence I have decided to share how to differentiate the demand and supply line so as to trade to your advantage and profit from this treacherous market. Finally, how to make use of news to short the market and use different platform for sustainable, profitable trades. I am almost full house and thanks everyone for registration.

K Time

K Time is the perfect element to time the effectiveness of a trade. When adding the time element into the K Theory, it allows the timing of a stock/index/commodity/forex/futures on its readiness to breakout/breakdown. This in turn allows one to long at the very bottom or short at the very top with ultra confidence. K Time will be the final ingredient in the K theory. Without the K Time, everything is still possible but not at precision.

The K Turn

Like I always emphasize, watch for the turn. The K turn is a perfect strategy for timing the entry and exit at pivotal turning points. The point is to long at the market bottom when it starts to exudes heavy buying and to short at the market top when profit taking or heavy short selling manifest itself.

The K Mind

By deciphering the minds of the Big Boys and know what they are trying to achieve, the only action you would need to take is to buy when they buy and sell when they sell.

The K Wave

Only by knowing which wave (buying/selling) is overwhelming, your only action is to follow that wave all the way until a new and pronounced wave is formed.

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Ronald K

Market PsychologistThe Big Speculator

The K Turn

Like I always emphasize, watch for the turn. The K turn is a perfect strategy for timing the entry and exit at pivotal turning points. The point is to long at the market bottom when it starts to exudes heavy buying and to short at the market top when profit taking or heavy short selling manifest itself.

The K Mind

By deciphering the minds of the Big Boys and know what they are trying to achieve, the only action you would need to take is to buy when they buy and sell when they sell.

K Time

K Time is the perfect element to time the effectiveness of a trade. When adding the time element into the K Theory, it allows the timing of a stock/index/commodity/forex/futures on its readiness to breakout/breakdown. This in turn allows one to long at the very bottom or short at the very top with ultra confidence. K Time will be the final ingredient in the K theory. Without the K Time, everything is still possible but not at precision.

The K Theory

Never let anyone affect your decision in the stock market. In this market, the only person that you can trust is yourself, no one else. The market is made up of minds of many men and when you put all these men together, everyone has their own views and outlook which could mislead your initial thought process. Never trust the so called gurus, analysts, fund manager, friends and the news. The charts are the truth, they don't lie. It is like a story book telling you what is going to happen in the future or some can call it a bible. To sum up, if you want to be profitable in the market, you must adapt fast to changes because the market is so dynamic. Always cut your losses small and let your profit run till a new wave is formed. The market is not always forgiving, so please don't attempt to punt the market if you are ignorant.

Ronald K

The K Wave

Only by knowing which wave (buying/selling) is overwhelming, your only action is to follow that wave all the way until a new and pronounced wave is formed.